Spanish prosecutors are investigating Construcciones y Auxiliar de Ferrocarriles (CAF), a Basque rail firm, for its alleged role in building and maintaining Jerusalem Light Rail lines that connect Israeli settlements in occupied East Jerusalem.
The probe stems from a complaint filed on 18 February by a coalition of organisations, including NOVACT, the Palestinian Community of Catalonia (Comunitat Palestina de Catalunya), the Committee of Solidarity with the Arab Cause (Comité de Solidaridad con la Causa Árabe), ODESCA, Peace with Dignity (Paz con Dignidad) and SUDS, represented by the Guernica 37 Centre.
According to Spanish media reports, prosecutors incorporated the complaint into ongoing pre-trial investigations at the National Court related to alleged violations of international law in Gaza. The complaint argues that CAF’s involvement in the Jerusalem Light Rail project has been "structural and indispensable" since 2019, through a consortium with Israeli company Shapir Engineering, in which the Spanish firm holds a 50 percent stake.
Rights groups allege that the project connects settlements in occupied East Jerusalem with West Jerusalem, reinforcing illegal annexation, settlement expansion and the fragmentation of Palestinian communities.
They accuse CAF and its executives of contributing to violations of international humanitarian law, including the transfer of population into occupied territory and the maintenance of discriminatory and inhumane practices.
The complaint states that such actions could amount to complicity in war crimes under the Geneva Conventions. The legal filing targets CAF’s board and executives from six subsidiaries, alleging responsibility for facilitating settlement expansion, supporting annexation policies and entrenching unequal infrastructure systems that affect Palestinians’ access to land and movement.
The case centres on two major light rail lines - the Red Line extension, which runs 22 kilometres from the Neve Ya’akov settlement in north East Jerusalem to Ein Kerem, with around 83 percent of its route serving settlements, and the Green Line, also 22 kilometres long, links the Hebrew University campus at Mount Scopus in East Jerusalem to the Gilo settlement in the south, with roughly 94 percent of its route serving settlements.
Only eight of the network's 66 stations are located in Palestinian areas, according to the complaint.
CAF is involved in the design, construction, operation and maintenance of the network through a long-term contract valued at approximately €1.8 billion, including responsibilities for rolling stock, signalling, energy and communications systems. The company operates the lines through the LAVI Light Rail joint venture.
Rights groups say the infrastructure project goes beyond transportation, arguing it integrates settlements into the urban fabric of Jerusalem while deepening territorial fragmentation and inequality.
The complaint also stresses that although the activities took place outside Spain, CAF is registered in Spain and subject to its jurisdiction, meaning authorities could pursue legal accountability under both domestic and international law.
The development marks a significant step in efforts to hold private companies accountable for activities linked to Israel's occupation, as legal campaigns increasingly target corporate actors alongside governments.
CAF has previously defended its role in the project, stating that it complies with international standards and that the railway was intended to improve transport services for all residents.
Under international law, including United Nations resolutions, Israeli settlements in the occupied Palestinian territory are considered illegal, placing associated economic activities under growing legal and human rights scrutiny.